Nissan Motor Co NSANY has paused its plans for two electric sedans in the U.S. while expanding its EV lineup to five vehicles.
What Happened: Nissan’s electric sedans remain in the production plan, but the company expects the SUVs to be available sooner, Reuters reported on Thursday. The Canton, Mississippi factory will support the manufacturing of these next-generation vehicles.
This decision comes as global automakers, facing weaker-than-expected EV demand, shift focus to hybrids and gas-powered models. Additionally, crossover SUVs and pickup trucks have seen higher demand than sedans in recent years.
“We are adjusting the timeline for the introduction of these five new models to ensure we bring the vehicles to the market at the right time,” a Nissan spokesperson said. The new lineup includes battery-powered crossover SUVs.
In March, Nissan announced plans to accelerate its global EV transition, including seven new models for the U.S. by 2026 and an EV manufacturing hub in the country. Automotive News first reported the pause in U.S. production plans for Nissan’s next-generation electric vehicles.
See Also: Tesla Starts Releasing Self-Driving Update That Allows Drivers To Keep Hands Off Wheel
Why It Matters: In March, Nissan revealed its ambitious plan to introduce 30 new models by 2026, with 16 of these being electrified. This initiative aims to boost global sales by 1 million vehicles, enhance profitability, and reduce EV costs by 30% by 2030. The company also targets an operating profit margin exceeding 6% and total shareholder returns surpassing 30% by the same period.
Furthermore, Nissan was contemplating shifting the production of its ultra-compact electric cars in-house, currently built by partner Mitsubishi Motors Corp (OTC:). This move could see production relocated to Nissan’s Kyushu factory by April 2028.
Price Action: On Tuesday, Nissan’s stock was trading 1.39% lower at $7.110 in the OTC, as per Benzinga Pro. The stock’s 52-week high stands at $9.65, while the low is $6.85. Nissan reported fourth-quarter earnings on May 9, 2024, with an EPS of $0.36 and revenue of $23.68 billion.
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